Digital video ad spend to climb by 22% in next 12 months
Joseph O'Halloran ©RapidTVNews | 05-04-2011
A new study from the Interactive Advertising Bureau (IAB) has revealed that the majority of marketers and agencies surveyed plan to increase digital video advertising spend over the next twelve months.Overall, in its “An Inside Look at Demand-Side Perceptions of Digital Video Advertising” survey of marketers and agencies revealed that overall, advertisers are finding that their audiences respond better to digital video advertising (DVA) with consumers showing a higher engagement rate with online video.
Just over two-thirds (69%) of marketers and 55% of agencies plan to increase their DVA with a 22% growth predicted in the next 12 months. The marketers and agencies expect to spend 17% of their total online display advertising budget on DVA in the next 12 months.
Marketers indicate that they will migrate TV ad dollars to digital video based on the belief it will deliver better ROI; agencies and television decision makers will shift ad dollars in an attempt to follow their target audiences. Of the DVA formats likely to be most used, agencies will primarily use pre-roll while marketers did not commit to any specific format. Most respondents believe the appropriate length is 15 seconds.
“The study substantiates the buy-side appeal of digital video advertising—the power of sight, sound and motion paired with interactivity,” said Sherrill Mane, SVP Industry Services, IAB. “This bodes exceptionally well for the future revenue growth.”
“There was strong consensus that demand for digital video advertising was strengthening,” added Randy Cohen, President of Advertiser Perceptions. “It was described best by a senior agency buyer who stated that ‘Digital video is becoming an ever-more common way that our target is consuming what was traditionally broadcast content—and our target is spending more time online, and video is another way to reach and engage the target.’”
The summary findings are at www.iab.net/digital_video_perceptions.
